Town of Lyons, Colorado Board of Trustees BOT Agenda Cover Sheet Agenda Item No: VIII-1, 2 & 3 Meeting Date: May 15, 2017

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1 Town of Lyons, Colorado Board of Trustees BOT Agenda Cover Sheet Agenda Item No: VIII-1, 2 & 3 Meeting Date: May 15, 2017 TO: FROM: Mayor Sullivan and Members of Board of Trustees Marcus McAskin DATE: May 10, 2017 ITEM: ORDINANCE NOS. 1014, 1015, 1016 (PLANET BLUEGRASS FARM ANNEXATION) X ORDINANCE(S) MOTION / RESOLUTION INFORMATION I. REQUEST OR ISSUE: The Planet Bluegrass Farm Annexation proposes the annexation of approximately 24.6 acres (the Subject Property ), to the Town of Lyons, together with certain rights-of-way ( ROW ) as described in the Petition for Annexation and Annexation Map. Overall, including associated ROW, the annexation parcel is approximately acres. The annexation was initiated by the sole owner of the Subject Property, Planet Bluegrass Annex, LLC (the Petitioner ). The petition (referred to herein as the Petition ) and Annexation Map are on file with the Town Clerk. On May 1, 2017, the Board of Trustees (the BOT ) held the eligibility hearing. By passage of Resolution No , the BOT determined that the Subject Property is eligible for annexation into the Town. On Monday May 15, 2017, the BOT will conduct a consolidated public hearing to consider whether the BOT desires to annex the Subject Property, consider the proposed Annexation Agreement with the Petitioner, and determine what the initial zoning of the Subject Property should be. If the annexation is approved by the BOT, the Lyons Municipal Code ( LMC ) requires that the annexation be referred to the registered electors of the Town for approval at a special election held for that purpose. Currently, Town Staff is anticipating that the special mail ballot election on the question of annexation will be conducted on Tuesday, July 11, Ordinance No ( Annexation Ordinance ) approves the annexation, subject to voter 1

2 approval of the annexation. Ordinance No ( Agreement Ordinance ) approves the Annexation Agreement between the Town and Petitioner. The Agreement Ordinance will only be effective if Town voters approve the annexation. Ordinance No (the Initial Zoning Ordinance ) establishes the initial zoning for the Subject Property, as further detailed in this report. The Initial Zoning Ordinance will only be effective if Town voters approve the annexation. The Annexation Ordinance, Agreement Ordinance, and Initial Zoning Ordinance are all scheduled for second reading and public hearing at the May 15, 2017 meeting. The Annexation Ordinance, Agreement Ordinance, and Initial Zoning Ordinance were approved on first reading on May 1, II. BACKGROUND: Annexation Process There are four major procedural steps required for voluntary annexation. The first two steps, commonly referred to as Substantial Compliance and Eligibility, are procedural in that BOT s role is to determine only whether or not an annexation request meets requirements set forth in the Act. The third step involves a legislative determination of the BOT as to whether it desires to annex the Subject Property into the boundaries of the Town. The fourth step includes establishing initial zoning of the Subject Property. The following is a summary of the four steps: 1. Substantial Compliance The BOT determines if the Petition for Annexation meets the requirements set forth in (1), C.R.S., which outlines the requirements of an annexation petition. Pursuant to the Act, in making a determination of substantial compliance, the BOT is required to set a date for the eligibility public hearing. The BOT adopted Resolution on March 20, 2017, finding that the Petition was in substantial compliance with state law requirements and scheduled the eligibility hearing for Monday, May 1, Eligibility Following public notice given in accordance with the applicable requirements of the Act, the BOT determines if the Subject Property meets the applicable provisions of the Act and the Colorado Constitution. The BOT adopted Resolution on May 1, 2017, finding that the Subject Property is eligible for annexation to the Town. 3. Annexation Once the Subject Property has been deemed eligible for annexation, the BOT may proceed with consideration of an annexation ordinance. The first two steps determine whether the Subject Property may be annexed; this third step determines whether the Subject Property should, as a legislative matter, be annexed. This step will occur following the conclusion of the consolidation public hearing (via Ordinance No. 1014). 2

3 4. Zoning If the BOT annexes the Subject Property, the Act requires that initial zoning of the Subject Property be established within ninety (90) days of the effective date of the annexation. In this case, the initial zoning of the Subject Property is scheduled to be considered by the BOT at the May 15, 2017 regular meeting/public hearing. Additional Town Process In addition to the four major procedural steps outlined above, Sec (a) of the LMC requires that any annexation of property exceeding five acres in size be referred to the Town s registered electors. This is not a requirement of the Act or State law. 5. Election Before the annexation of the Subject Property may become effective, the BOT must refer the question of whether to approve the annexation of the Subject Property to the Town s registered electors. In addition to approving the annexation of the Subject Property, the Annexation Ordinance (Ordinance No. 1014) also requires Town Staff to conduct a special mail ballot election on the question of whether to annex the Subject Property as soon as practicable and suspends the effective date of the Annexation Ordinance until the annexation has been approved by a majority of the Town s registered electors. If the annexation is not approved by voters, the Subject Property will not be annexed. III. STAFF RECOMMENDATIONS AND NEXT STEPS: 1. Annexation (Ordinance No. 1014) The Annexation Ordinance confirms the findings set forth in the eligibility resolution (Resolution ), which are required findings for the approval of an annexation under both state law and the LMC, and approves the annexation of the Subject Property subject to referral of the annexation to the Town s registered electors at a special mail ballot election. The Town s annexation review criteria are set forth in Section of the LMC, copied below for reference. Sec Annexation review criteria. It shall be the general policy of the Board of Trustees with respect to annexations and the consideration of annexation petitions that: (1) Annexation is a discretionary act. With the exception of an initiated petition for the annexation of an enclave, the Board of Trustees shall exercise its sole discretion in the annexation of territory to the Town. (2) The property is eligible for annexation if: a. Not less than one-sixth (1/6) of the perimeter of the area proposed to be annexed is contiguous with the Town. Contiguity is not affected by the existence of streets, alleys, rights-of-way, public lands (except County-owned open space) or water bodies between the Town and the land proposed to be annexed. The one-sixth contiguity of the perimeter 3

4 may be achieved by the annexation of one (1) or more parcels in a series, which can be considered simultaneously for the purpose of the public hearing. Affirmative finding set forth in Resolution b. A community of interest exists between the territory proposed to be annexed and the Town. Affirmative finding set forth in Resolution c. The territory proposed to be annexed is urban or will be urbanized in the near future and is integrated or is capable of being integrated with the Town. Existence of Subparagraph a. above is a basis for a finding of Subparagraphs b. and c., unless the Board of Trustees at a public hearing finds that at least two (2) of the following exist: 1. Less than fifty percent (50%) of the adult residents of the area proposed to be annexed use any of the recreational, civic, social, religious, industrial or commercial facilities of the Town and less than twenty-five percent (25%) of these adult residents are employed in the annexing Town; 2. At least one-half (½) of the land proposed to be annexed is agricultural, and landowners constituting at least one-half (½) of the total area express, under oath, an intention to devote the land to such agricultural use for at least five (5) years; and 3. It is physically impractical to extend to the proposed area those urban services the Town provides to all its citizens and upon the same conditions. This standard does not apply to the extent that any portion of an area proposed to be annexed is provided with, or will within the reasonably near future be provided with, service by a quasi-municipal corporation (such as a special district). Affirmative finding set forth in Resolution forth in (1) (3) above are not applicable. 4 The criteria set (3) No land held in identical ownership may be divided into separate parcels for annexation without written consent of the landowner unless the parcels are separated by a dedicated street, road or other public way. (This applies even when the federal government owns the land, although federal and state public lands may be ignored for purposes of contiguity.) Not applicable. (4) No land in identical ownership that comprises at least twenty (20) acres and that has improvements with an assessed value in excess of two hundred thousand dollars ($200,000.00) for ad valorem tax purposes may be included in the annexation without written consent of the owner unless the parcel is located entirely within the outer boundaries of the Town as they exist at the time of annexation. Not applicable, the sole owner of the Subject Property (exclusive of ROW) has petitioned for annexation. (5) No annexation resolution pursuant to Section of this Chapter and no annexation petition or petition for an annexation election is valid when

5 annexation proceedings have been initiated for the annexation of part of such territory by another Town. In that case, other provisions apply. See Section , C.R.S. Not applicable, no annexation proceedings for the Subject Property have been initiated by another municipality. (6) If an annexation will result in the detachment of area from a school district and its removal to another school district, the annexation petition or petition for annexation election must be accompanied by a resolution of the board of directors of the school district to which such area will be attached, approving the annexation. Not applicable. (7) The parcel annexed must not have the effect of extending the Town's boundary more than three (3) miles in any direction in any one (1) year. This three-mile limit may be exceeded if the limit would have the effect of dividing a parcel of property held in identical ownership if at least fifty percent (50%) of the property is within the three-mile limit. In such event, the entire property held in identical ownership may be annexed in any one (1) year without regard to such mileage limitation. Such three-mile limit may also be exceeded for the annexation of an enterprise zone. Not applicable, the annexation of the Subject Property will not have the effect of extending the Town s boundaries more than three miles in any direction. (8) Prior to completion of any annexation within the three-mile area, the Town shall have in place a plan for that area that generally describes the proposed location, character and extent of streets, subways, bridges, waterways, waterfronts, parkways, playgrounds, squares, parks, aviation fields, other public ways, grounds, open spaces, public utilities and terminals for water, light, sanitation, transportation and power to be provided by the Town and the proposed land uses for the area. Such plan shall be updated at least once annually. Criterion met. The Town s LPPA Master Plan is the plan in place. (9) If a portion of a platted street or alley is to be annexed, the entire width of the street or alley must be included within the area annexed. Criterion met. (10) The Town may not deny reasonable access to landowners or owners of easements or franchises adjoining a platted street or alley that the Town has annexed but that is bounded on one (1) or both sides by unincorporated property. Criterion met. (11) Annexed areas will not divide tracts of land to prevent further annexation of adjoining parcels (for example, leaving a "gap" or a "strip" of land between property to be annexed and the adjoining property). Criterion met. 5

6 (12) The land to be annexed and the uses proposed for the land shall contribute to the orderly growth of the Town and shall generally conform to the goals and policies of the Comprehensive Plan. Criterion met. For additional discussion regarding conformance to the Comprehensive Plan, please reference Board of Trustees Staff Report and PCDC Recommendation dated April 27, (13) Certain public facilities and amenities are necessary and must be constructed as part of any territory annexed to the Town in order that the public needs may be served by such facilities. These facilities include, but not by way of limitation, arterial streets, bridges, public parks and recreation areas, school sites, fire and police station sites and storm drainage facilities. The annexation of lands to the Town shall be shown not to create any additional cost or burden on the then-existing residents of the Town to provide such public facilities in any newly annexed area. Criterion met based upon terms and conditions set forth in the Annexation Agreement. (14) The petitioner for annexation shall be responsible for paying the Town's full cost for processing the annexation petition, from initial discussion with the Planning Commission before submittal of the petition, through the approval and recording of the final annexation documents, unless otherwise approved by the Board of Trustees. Criterion met, the Petitioner is required to pay the Town s full cost for processing the annexation petition, from initial discussion with the Planning Commission before submittal of the petition, through the approval and recording of the final annexation documents. In addition, and as required by the LMC, the Petitioner will bear all costs associated with the special mail ballot election. (15) All subsurface (nontributary) water rights shall be deeded to the Town at the time of annexation as authorized by Article 90 of Title 37, C.R.S. The Petitioner has submitted written documentation to the Town that Petitioner does not own any subsurface (nontributary) water rights. In addition, paragraph 15 of the Annexation Agreement addresses water dedication requirements: 15. Water Rights Dedication. Annexor has requested that dedication of water rights be postponed until the earlier to occur of: (a) future subdivision of the Property; or (b) the Conceptual Plan for the Property is amended in accordance with the procedures set forth in Section (h) and Article 7 of Chapter 16 of the LMC. Water dedication requirements for the Property shall be calculated in accordance with Sections and of the LMC ( Town Water Dedication Requirements ). The Annexor shall convey, transfer or assign to the Town, free and clear of all liens and encumbrances, units of Colorado-Big Thompson water (C-BT Units) as required by the Town Water Dedication Requirements. The dedication requirements for the Property, upon any subdivision of the Property or future Site Plan submitted in accordance with Section 16-6

7 3-220(h) and Article 7 of Chapter 16 of the LMC shall be determined by calculating the water use demands for such subdivision or development that is in strict accordance with the Town Water Dedication Requirements, as reviewed and approved by the Town Engineer and Town Administrator. In lieu of the C-BT Units required in this Paragraph, at the sole and absolute discretion of the Board of Trustees, the Annexor may be required to pay cash-in-lieu at the current rate established by the Town at the time the C-BT Units would otherwise be due. In addition to Town Water Dedication Requirements, the Annexor shall, as a condition of the Town s approval of any Event plan for any Major Event or Minor Event, as those terms are defined in the Amendable Letter of Understanding attached hereto as Exhibit C, provide the Town with details related to the source and amount of water sufficient to control dust during events, parking, and the restoration of the Property after the conclusion of any Major Event or Minor Event, in order to encourage vegetative re-establishment following camping, parking and other allowed uses of the Property. (16) No proceedings for annexation to a municipality may be initiated in any area which is the same or substantially the same area in which an election for annexation to the same municipality has been held within the preceding twelve (12) months. Criterion not applicable; no election for annexation concerning the Subject Property has been held within the preceding twelve (12) months. Staff recommends adopting Ordinance No on second reading. 2. Annexation Agreement (Ordinance No. 1015) Chapter 15 of the LMC contemplates the Town and the Petitioner entering into an annexation agreement setting forth the terms and conditions of the annexation and the responsibilities of the Petitioner. Ordinance No finds it is in the best interests of the Town to enter into the Annexation Agreement between the Town and the owner of the Subject Property and provides for the recording of the Annexation Agreement in the real property records of Boulder County if and only if the annexation of the Subject Property is approved by the Town s voters. Staff recommends adopting Ordinance No on second reading. 3. Initial Zoning (Ordinance No. 1016) State law requires that initial zoning of property annexed to the Town be established within 90 days of the effective date of the annexation. The Subject Property is currently zoned Boulder County Rural Residential within unincorporated Boulder 7

8 County. The Petitioner is requesting that the Subject Property be initially zoned as CE-1 Commercial Entertainment District in accordance with Chapter 16 of the Municipal Code. As set forth in Section of the Municipal Code, the CE-1 District has been created to provide for a wide variety of for-profit and/or not-for-profit entertainment activities and uses, including but not limited to: (1) Passive entertainment, such as concert and state performances. (2) Education, training and research related to the entertainment-based function of the site. (3) Hand production and assembly of entertainment products and instruments as an activity related to the entertainment-based function of the site. (4) The sale of food or beverages as an activity related to the approved uses of the site. (5) On-site residence, business and office space for staff, tenants and/or owners as related to the site. (6) Retail and mail order sales of products produced on site and other arts, crafts and gift items related to approved on-site functions. The Planning and Community Development Commission (PCDC) reviewed both the proposed annexation and the proposed initial CE-1 zoning at a public hearing conducted on Monday, April 24, Following public comment and deliberation, the PCDC recommended that the BOT proceed to approve the proposed annexation and approve the CE-1 zoning for the subject property, subject to the following modifications and/or conditions: 1. That the Board of Trustees (BOT) consider restrictions on noise amplification and time limits or curfews on music, similar to restrictions in place on the Riverbend property; 2. That Town Staff work with the Owner and the BOT to insert better language in the Keynotes to Conceptual Plan for Planet Bluegrass Farm Annexation ( Keynotes ) and Amendable Letter of Understanding (PBG Farm Property) ( Amendable Letter ) to clarify that major events on the Farm property will be limited to the same dates at which major events are conducted on the Planet Bluegrass (Festival) property, and that there will be no standalone major events conducted on the Farm property; 3. That Town Staff work with the Owner and the BOT to amend the Keynotes and Amendable Letter, as necessary, to: (a) cap the number of minor events at sixteen (16) annually; (b) limit all minor events to a maximum capacity of 250 people or less; and (c) clarify 8

9 that no camping is allowed at minor events 1. The CE-1 Zone District is a unique zone district that requires an Amendable Letter of Understanding ( Amendable Letter ) between the Town and the Petitioner. The draft Amendable Letter is included as an exhibit to the Annexation Agreement. Town Planner, Bob Joseph, has prepared a report dated April 27, 2017 titled Board of Trustees Staff Report and PCDC Recommendation which contains information pertaining to the Petitioner s initial zoning request. A copy of the report is in the BOT packet for the May 15 th public hearing. Town Staff will present additional background information regarding the proposed zoning at the May 15, 2017 public hearing. Staff recommends adopting Ordinance No on second reading. IV. FISCAL IMPACTS: Ordinances 1014, 1015, and 1016 will not have any direct impact on the Town as the annexation of the Subject Property is subject to approval by a majority of the Town s registered electors in a special mail ballot election election. The three ordinances (Annexation Ordinance, Agreement Ordinance, and Initial Zoning Ordinance) will only become effective if the Town electors ultimately approve the annexation of the Subject Property at a special election held for that purpose. In addition, the Amendable Letter of Understanding incorporated in the Annexation Agreement by reference, requires the Petitioner to be responsible for all costs and expenses of implementing all event plans, specifically including all police expenses as said expenses are reasonably requested by the Town s Chief Law Enforcement Administrator. V. LEGAL ISSUES: None VI. VII. CONFLICTS OR ENVIRONMENTAL ISSUES: N/A PROPOSED MOTIONS: Annexation Ordinance (Ordinance No. 1014) I MOVE TO APPROVE ORDINANCE NO. 1014, AN ORDINANCE OF THE BOARD OF TRUSTEES OF THE TOWN OF LYONS, COLORADO ANNEXING CERTAIN TERRITORY TO THE TOWN KNOWN AS THE PLANET BLUEGRASS FARM ANNEXATION ON SECOND READING. 1 The PCDC s recommendation is set forth in PCDC Resolution 2017-PCDC-02, titled A RESOLUTION OF THE PLANNING AND COMMUNITY DEVELOPMENT COMMISSION OF THE TOWN OF LYONS, COLORADO, RECOMMENDING APPROVAL OF THE PETITION FOR ANNEXATION SUBMITTED TO THE TOWN BY PLANET BLUEGRASS ANNEX, LLC, AND FURTHER RECOMMENDING THAT THE BOARD OF TRUSTEES ESTABLISH THE INITIAL ZONING OF THE SUBJECT PROPERTY AS COMMERCIAL ENTERTAINMENT (CE-1), SUBJECT TO CERTAIN CONDITIONS. 9

10 Agreement Ordinance (Ordinance No. 1015) I MOVE TO APPROVE ORDINANCE NO. 1015, AN ORDINANCE OF THE BOARD OF TRUSTEES OF THE TOWN OF LYONS, COLORADO APPROVING AN ANNEXATION AGREEMENT WITH PLANET BLUEGRASS ANNEX, LLC ON SECOND READING. Initial Zoning Ordinance (Ordinance No. 1016) I MOVE TO APPROVE ORDINANCE NO. 1016, AN ORDINANCE OF THE BOARD OF TRUSTEES OF THE TOWN OF LYONS, COLORADO, APPROVING INITIAL ZONING OF PROPERTY KNOWN AS THE PLANET BLUEGRASS FARM ANNEXATION FROM BOULDER COUNTY RURAL RESIDENTIAL TO TOWN OF LYONS COMMERCIAL ENTERTAINMENT (CE-1), SUBJECT TO THE TERMS AND CONDITIONS OF THE ANNEXATION AGREEMENT BY AND BETWEEN THE TOWN AND PLANET BLUEGRASS ANNEX, LLC, AND AMENDING THE OFFICIAL ZONING MAP OF THE TOWN OF LYONS ON SECOND READING. VIII. MOTION FOR DENIAL: Annexation Ordinance (Ordinance No. 1014) I MOVE TO DENY ORDINANCE NO. 1014, AN ORDINANCE OF THE BOARD OF TRUSTEES OF THE TOWN OF LYONS, COLORADO ANNEXING CERTAIN TERRITORY TO THE TOWN KNOWN AS THE PLANET BLUEGRASS FARM ANNEXATION ON SECOND READING, for the following reasons: (Board member making motion to insert specific legislative findings regarding why the Subject Property should not be annexed to the Town, or insert specific factual findings regarding the annexation review criteria set forth at Section , LMC, that have not been satisfied)**. Note: If the motion to deny the annexation is approved by the BOT, then no motions denying Ordinance No or Ordinance No are required, as the BOT will not have jurisdiction to consider the approval of an Annexation Agreement with Petitioner or the initial zoning of the Subject Property. **Staff recommends that the Board of Trustees confer with the Town Attorney prior to making a motion to deny Ordinance No Attachments: Attachment 1: Attachment 2: Attachment 3: Ordinance No (Annexation Ordinance) Ordinance No (Annexation Agreement Ordinance) Ordinance No (Initial Zoning Ordinance) 10

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